Stock Market Indicator Hang Seng Potentially Breaks Resistance at 25,000 on Tuesday
Asian Markets Set to Gain on Interest Rate Cuts and Bargain Hunting
Asian bourses are expected to open higher again on Tuesday, buoyed by interest rate cuts that ease borrowing costs and encourage investment. This positive trend is driven by a combination of monetary easing and strategic buying of undervalued stocks, boosting market momentum and risk appetite.
Interest rate cuts create a more accommodative monetary environment, which generally supports equity valuations by lowering discount rates and making financing cheaper. This incentivizes both corporate expansions and investor inflows into equities.
Bargain hunting emerges when investors seek to buy shares at attractive valuations amid market corrections or volatility, amplifying buying pressure and supporting price recovery.
In recent days, the Hang Seng Index rallied 225.64 points or 0.92 percent on Monday, now resting just above the 24,730-point plateau. This comes after a four-day losing streak on the Hong Kong stock market, which was broken on Monday. The European and U.S. markets were sharply higher on Monday as well.
The optimism is rooted in the increased chances of a quarter point rate cut by the Federal Reserve next month, which has jumped to 91.9 percent from 63.1 percent. This optimism, along with bargain hunting, is expected to drive the global forecast for the Asian markets.
In the midst of the ongoing trade tensions, the decline in crude oil prices can be attributed to oversupply concerns and fears of a tariff-induced slowdown by the global economy. Crude oil continued to decline on Monday.
In terms of individual stock performance, among the actives, Alibaba Group slumped 0.60 percent, while Alibaba Health Info spiked 1.87 percent. CNOOC sank 0.54 percent, CSPC Pharmaceutical stumbled 2.33 percent, and CITIC strengthened 1.03 percent. On the other hand, Galaxy Entertainment surged 2.32 percent, Hang Lung Properties climbed 1.01 percent, and Henderson Land expanded 1.13 percent.
Looking back, in 2025, Asian markets showed strong momentum driven by trade optimism and corporate reforms, with indexes like Japan’s Nikkei 225 hitting record highs partly due to policy changes and a favorable risk appetite [1]. The easing interest rate cycle globally and regionally encourages investors to explore Asian opportunities, reinforcing positive market sentiment and capital inflows [3].
Amid regulatory and geopolitical complexities, improved corporate governance and strategic sector entry points (logistics, biotech, electronics) invite investors targeting long-term growth, suggesting sustained buying interest beyond short-term rallies [1][2]. Although volatility due to geopolitical tensions remains, the long-run outlook for equities—including Asian stocks—remains positive, with skillful navigation of changing economic conditions key for investors [4].
In conclusion, the positive trajectory in Asian equity markets is supported by monetary easing through interest rate cuts and the strategic buying of undervalued stocks, enhancing liquidity, investor confidence, and growth prospects.
Technology plays a crucial role in driving economic growth in the Asian markets, as it provides new opportunities for investment in various sectors such as e-commerce, biotech, and electronics.
The increasing use of technology in financial services, such as digital payments and mobile banking, also facilitates easier access to financial services for individuals and small businesses, thereby fostering investment and economic growth.
